slides for introduction to supply chain management.

1. PRESENTED BY:
Nitesh gupta
Bhabesh Gautam
2/20/2014
bhabesh
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2. What is supply chain management ?
 First one is that practically every product that reaches an
end user represents a cumulative effort of multiple
organizations. These organizations refers collectively as a
supply chain.
 The second idea is that while supply chain have existed for
a long time , most organizations have only paid attention
to what was happening within their “four walls ”. Very few
organizations realized about delivering goods to final
consumer .
 SCM is the active management supply chain activities to
maximize customer value and achieve a sustainable
competitive advantage.
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3. Meaning:
Supply chain:
Network of organizations and business process for procuring
materials, transforming raw materials into the finished products
and distributing the finished products to the customers.
Supply chain management :
Integration of suppliers , distributors and customer logistics
into one cohesive process.
Supply chain management process:
information system that automate the flow information between
a firm and its suppliers in order to optimize the planning ,
sourcing , manufacturing and delivering of products and services.
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4. SCM objectives:
What?
Establish policies , objectives and
operating footprints.
How much?
Deploy resources to match supply
with demand .
When ? Where?
Schedule , monitor , control
and adjust production.
SCM outcomes:
Strategic
Objectives.
Supply policies(service levels).
Network design.
Demand forecast
Production ,procurement &logistic plan
Tactical
Inventory target.
Work center scheduling
Order/inventory tracking
Operational
Do:
Build and transport.
Order cycle
Material movement.
Execution
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5. Customer value goals:
Give customer what
they want , when and
how they want it , at
low cost.
Business value goals:
Rapid demand
fulfillment.
Collaborative supply
chain planning and
execution.
Enterprise
coordination of
manufacturing and
business process.
Effective distribution
system
Responsiveness and
accountability to
customers.
Objectives of SCM
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6. upstream
supplier
supplier
supplier
manufacturer
distributer
retailer
customer
supplier
supplier
downstream
supplier
fig: an example of supply chain.
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7. Information system and SCM
 Supply chain activities cover every thing from product
development , sourcing , production and logistics as
well as information system.
 The organizations that make up supply chains are
“linked” through physical flow and information flow.
Physical flow involves transformation , movement and
storage of goods & materials . Information flow allows
various supply chain partners to co-ordinate their long
term plans and control day to day flow of goods and
materials forward and backward. One of the strategy to
effective mgmt of supply chain is “just-in-time ”
strategy.
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8.  Some uncertainties in supply chain are uncertain
product demand , late shipment from suppliers ,
defective parts or raw materials , production process
break down.
 One of the recurring problem in SCM is “bullwhip”
effect.
The bullwhip effect :
Inaccurate information can cause minor fluctuations in
demand for the product to be amplified as one moves
further back to supply chain. Minor fluctuation in retail
sales for a product can create excess inventory for
distributors , manufacturers and suppliers.
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9. How information system facilitate SCM
 Information from supply chain management system
helps firms
Decide when and what to produce , store and move
Rapidly communicate others
Track the status of orders
Check inventory availability and monitor inventory
levels.
Reduce inventory , transportation and warehouse cost
Track shipments
Plan production based on actual customer demand
Rapidly communicate changes in product design.
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10. Supply chain management software
 Supply chain planning system: it enables the firms to
model its existing supply chain , generate demand
forecast for product and develop optical sourcing and
manufacturing plans.
 Supply chain execution system: it manage the flow of
products through distribution centers and warehouse
to ensure that products are delivered to right location
in most efficient manner.
 Supply chain management software vendors are SAP ,
Oracle PeopleSoft , Manugistics , i2 technologies etc.
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11. Each interface in the supply chain represents:
Movement of goods
Raw material
Information flow
Transfer of title
Component
Purchase and sale
Manufacturer
Strategic SCM consists of
developing smarter ways to:
Choose
Buy from and
Sell to your business partners
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Retailer
Consumer
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12. SCM addresses challenges through several areas.
Supply chain
strategy
Supply chain
planning
Logistics
Product life
cycle
management
SCM
Procurement
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Supply chain
enterprise
application
Assets
management
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13. GLOBAL SUPPLY CHAIN AND INTERNET
 Intranet is used by firms to improve coordination
among their internal supply chain process and they
use extranet to coordinate among business partners
and customers .
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14. USE OF INTERNET IN SCM
Planning
and
scheduling
Order
processing
Suppliers
Procurement
Customers
Logistics
service
Shipping
Production
Retailers
Inventory
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Distributors
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15. Demand driven supply chains
Push versus pull based supply chain models:
Push model:
Supplier
Supply to
Forecast
Manufacturer
Distributer
Retailer
production based inventory based stock based
on forecast
on forecast
on forecast
Customer
purchase what
is available
Pull model:
Supplier
Supply to
Order
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Manufacturer
Distributer
produce to order automatically
replenish
warehouse
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Retailer
Customer
automatically
customer
replenish stock orders
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16. Future internet driven supply chain operates like a digital
nervous system.
Distributors
Retailers
Manufacturers
Suppliers
Virtual
manufacturers
Private
industrial
networks
Net market
place
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Contract
manufactures
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Logistic
providers
Customers
Logistics
exchange
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17. ANvY QUERIES ?
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